OLVI PLC Interim report 16 October 2024 at 9 am
Olvi Group's interim report January-September 2024 - Profitability improved in line with targets
July-September 2024
- Sales volume increased by 3.2% from the comparison period and was 272.6 (264.1) million litres.
- Net sales increased by 8.1% and were EUR 184.9 (171.1) million.
- The adjusted operating result increased by 45.4% to EUR 29.8 (20.5) million.
January-September 2024
- Sales volume remained at the comparison period's level and was 775.7 (773.1) million litres.
- Net sales increased by 2.8% to EUR 510.0 (495.9) million.
- The adjusted operating result increased by 21.5% to EUR 72.0 (59.3) million.
- The equity ratio was 60.3% (57.3%).
Near-term outlook for 2024 (changed on 14 October 2024)
Olvi Group's adjusted operating result for the 2024 financial year is expected to be EUR 78-84 million (previously EUR 74-80 million).
The Group's key figures
7-9/ 2024 | 7-9/ 2023 | Change, % | 1-9/ 2024 | 1-9/ 2023 | Change, % | 1-12/ 2023 | |
Sales volume, Mltr | 272.6 | 264.1 | 3.2 | 775.7 | 773.1 | 0.3 | 975.8 |
Net sales, MEUR | 184.9 | 171.1 | 8.1 | 510.0 | 495.9 | 2.8 | 630.6 |
Gross profit, MEUR | 78.5 | 64.3 | 22.2 | 208.4 | 185.0 | 12.7 | 235.6 |
% of net sales | 42.5 | 37.6 | 40.9 | 37.3 | 37.4 | ||
Adjusted operating result, MEUR | 29.8 | 20.5 | 45.4 | 72.0 | 59.3 | 21.5 | 67.1 |
% of net sales | 16.1 | 12.0 | 14.1 | 12.0 | 10.6 | ||
Items affecting the comparability of the operating result, MEUR | 0.0 | 0.0 | 0.0 | -12.2 | -12.2 | ||
Operating result, MEUR | 29.8 | 20.5 | 45.4 | 72.0 | 47.1 | 52.9 | 54.9 |
% of net sales | 16.1 | 12.0 | 14.1 | 9.5 | 8.7 | ||
Adjusted profit for the period, MEUR | 23.4 | 16.7 | 40.2 | 55.0 | 44.2 | 24.4 | 50.7 |
% of net sales | 12.7 | 9.8 | 10.8 | 8.9 | 8.0 | ||
Profit for the period, MEUR | 23.4 | 16.7 | 40.2 | 55.0 | 32.0 | 71.9 | 38.5 |
% of net sales | 12.7 | 9.8 | 10.8 | 6.5 | 6.1 | ||
Earnings per share, EUR | 1.12 | 0.80 | 40.0 | 2.62 | 1.54 | 70.1 | 1.85 |
Investments, MEUR | 12.2 | 3.5 | 251.3 | 27.0 | 17.3 | 56.3 | 24.9 |
Equity per share, EUR | 15.32 | 13.66 | 12.1 | 13.95 | |||
Equity ratio, % | 60.3 | 57.3 | 59.0 | ||||
Gearing, % | -11.3 | -7.7 | -8.5 |
Olvi presents the adjusted operating result (EBIT) and the adjusted profit for the period as alternative performance measures to improve comparability between reporting periods. In January-September 2023, items affecting comparability not included in the adjusted operating result and the profit for the period totalled EUR 12.2 million and were related to the fine imposed on the Belarusian subsidiary.
CEO's review (Patrik Lundell)
Strategy implementation supports profitability improvement
This year is the first year of our renewed strategy. During 2024, we have focused on people, profitability and data in particular. In terms of personnel, we have strengthened the organisation, increased training and created new job descriptions to support development. We have succeeded in improving profitability by improving our own operational efficiency and through price and range optimisation. In terms of data, we have started developing and harmonising processes, improving data-based management capabilities, and strengthening the efficiency of the production and supply chain.
In line with our strategy, we are aiming for an operating result level of more than 12%. We have been operating in a market situation where the development of consumers' purchasing power has been weak and the market as a whole has not grown. Despite the more intense competitive situation, we have been able to grow or maintain our strong market shares and improve our profitability, supported by our strong brands. In addition, we aim to meet local customer and consumer needs through leading brands and the launch of new products. Our measures to compensate for cost inflation have been systematic and successful.
Our vision is to be the preferred multi-local beverage company for customers, consumers, employees and partners. Growth is made possible by our extensive product selection, which meets a diverse range of consumer demand in both the alcoholic and non-alcoholic product categories, as well as multichannel availability. Our sales of non-alcoholic products have increased, and we continue to see opportunities for growth in these products as consumer behaviour changes.
To accelerate the Group's growth, we are also actively seeking expansion opportunities, both organically and inorganically.
Financial development
July-September 2024
Sales volume increased by 3.2% from the comparison period to 272.6 (264.1) million litres. Compared with the previous year, the warm weather increased the sales volume, particularly in July. Throughout the summer season, the delivery accuracy was better than in previous years, which supported sales development. However, consumers' weak purchasing power was reflected in the development of the sales volume in Finland and the Baltic Sea segments throughout the quarter. Net sales increased by 8.1% to EUR 184.9 (171.1) million. Net sales grew in all reporting segments as the average price increased. The average price increased as a result of changes in the product portfolio and targeted increases in sales prices.
Profitability continued to improve in all reporting segments as a result of the stabilisation of raw material price increases, product portfolio development and market-specific price increases. Gross profit increased by 22.2% from the comparison period to EUR 78.5 (64.3) million. The adjusted operating result was EUR 29.8 (20.5) million, with an increase of 45.4% from the comparison period.
January-September 2024
The sales volume remained at the previous year's level and was 775.7 (773.1) million litres. The overall development of the market has been affected by consumers' weak purchasing power. Price competition increased as consumers sought more affordable products. Despite intensified competition, we were able to increase sales volumes in both retail sales and the hotel and restaurant channel (HoReCa), as well as maintaining our market shares. On the other hand, harbour and cross-border sales were lower than in the previous year, especially between Finland and Estonia. Thanks to good average price development in the third quarter, net sales increased by 2.8% to EUR 510.0 (495.9) million in January-September.
The adjusted operating result increased by 21.5% from the comparison period and was EUR 72.0 (59.3) million. Profitability improved during the first and third quarters in particular. Production costs ceased to increase, the weather was warm in the summer season, and the efficiency of our own operations improved, which contributed to better profitability.
Segment-specific business development: January-September 2024
Profitability recovered as planned in Finnish operations
The net sales of our business operations in Finland grew by 3.9% to EUR 182.1 (175.2) million, but the sales volume decreased by 3.2% to 201.1 (207.8) million litres. The decline in the sales volume was affected by changes to the product portfolio in retail in particular, but also by changes in consumers' purchasing behaviour. Meanwhile, sales were supported by the markedly higher delivery accuracy than in previous years, as both the buffering of products in preparation for the season and an increase in collection capacity were carried out successfully. In product categories, the best sales development was recorded for water, while the beer product portfolio was optimised systematically in terms of volume. The market share of beer has remained strong at more than 50%. Sales volumes in the hard seltzer product category have also continued to grow, and Olvi is the market leader in the category despite intensified competition.
As a result of the amendment to alcohol legislation, retailers adjusted their selections to include beverages with an alcoholic strength by volume of 5.5% to 8.0%, which increased Olvi's sales. As a whole, however, these products do not represent a significant portion of the sales volume or net sales of our Finnish business operations, but they have become part of the retail selection and thereby also part of Olvi's product portfolio.
The operating result of our Finnish business operations was EUR 22.2 (15.4) million. The operating result improved by 44.7% year-on-year, primarily because of improved operational efficiency, product range changes and price increases. The most significant price increases were implemented during the first half of the year. As a whole, however, profitability has not returned to the level achieved before the pandemic and the Ukrainian war. We will continue to implement measures to improve profitability and achieve targets in line with the strategy through product selection development and by improving cost-effectiveness, among other means.
Net sales in the Baltic Sea region remained at the previous year's level, and profitability improved despite intensified price competition and weak consumer demand
The sales volume in the Baltic Sea region decreased by 2.7% to 299.3 (307.6) million litres, and net sales remained at the previous year's level, at EUR 212.6 (213.6) million. The sales volume decreased mainly as a result of the product portfolio optimisation measures carried out in Denmark to improve the average sales price and profitability. In the Baltic countries, especially in Estonia, consumers' purchasing power developed weakly during the reporting period. This also reduced beverage demand and sales volumes and led to price competition, particularly towards the end of the reporting period. However, the segment's hotel, restaurant and catering channel (HoReCa) sales improved year-on-year.
The operating result increased by 7.2% to EUR 21.4 (20.0) million. Profitability improved, as costs were no longer increasing, measures were taken to improve production efficiency, and targeted price increases were implemented. Development measures in our Danish business operations continue, and profitability has improved.
The total market in Belarus grew
In Belarus, consumer demand developed favourably and supported the growth of the market as a whole. The segment's sales volume increased by 7.5% to 280.5 (260.9) million litres. The sales volume increased most in non-alcoholic product categories such as water, energy drinks and soft drinks. Net sales increased by 8.7% and were EUR 118.7 (109.2) million. The exchange rate of the Belarusian rouble weakened from the comparison period. In the local currency, net sales grew by 18.3%. The adjusted operating result increased by 16.9% from the comparison period and was EUR 29.2 (24.9) million. In the local currency, the adjusted operating result improved by 27.0%. Although our business operations in Belarus are reported as part of Olvi Group, they are funded through local income financing, and the distribution of profits to the parent company is limited.
Sales development
In January-September, Olvi Group's sales volume remained at the comparison period's level and was 775.7 (773.1) million litres.
Sales volume, Mltr | 7-9/ 2024 | 7-9/ 2023 | Change, % | 1-9/ 2024 | 1-9/ 2023 | Change, % |
Finland | 68.0 | 68.9 | -1.3 | 201.1 | 207.8 | -3.2 |
Baltic Sea region | 105.1 | 107.1 | -1.9 | 299.3 | 307.6 | -2.7 |
Belarus | 101.4 | 89.2 | 13.7 | 280.5 | 260.9 | 7.5 |
Eliminations | -1.9 | -1.1 | -5.2 | -3.2 | ||
Total | 272.6 | 264.1 | 3.2 | 775.7 | 773.1 | 0.3 |
The Group's net sales in January-September increased by 2.8% to EUR 510.0 (495.9) million.
Net sales, MEUR | 7-9/ 2024 | 7-9/ 2023 | Change, % | 1-9/ 2024 | 1-9/ 2023 | Change, % |
Finland | 63.0 | 59.5 | 5.9 | 182.1 | 175.2 | 3.9 |
Baltic Sea region | 77.2 | 75.8 | 1.9 | 212.6 | 213.6 | -0.5 |
Belarus | 46.0 | 36.4 | 26.3 | 118.7 | 109.2 | 8.7 |
Eliminations | -1.3 | -0.6 | -3.4 | -2.1 | ||
Total | 184.9 | 171.1 | 8.1 | 510.0 | 495.9 | 2.8 |
On 1 January 2024, Olvi Group changed the presentation of the segments to correspond to the monitoring carried out by the management. Intra-segment business transactions are eliminated from the segments' sales volumes and net sales in their presentation. The comparison information has been changed accordingly.
Financial performance
The Group's operating result in July-September was EUR 29.8 (20.5) million, or 16.1% (12.0%) of net sales. The third-quarter operating result does not include items affecting comparability. The adjusted operating result increased by 21.5% in January-September and was EUR 72.0 (59.3) million. The improvement in the adjusted operating result was mainly caused by improved profitability in our Finnish operations, compared with the corresponding period in the previous year. The operating result in January-September increased by 52.9% from the comparison period to EUR 72.0 (47.1) million. In the comparison period, the operating result was burdened by a fine imposed on the Belarusian subsidiary.
Adjusted operating result, MEUR | 7-9/ 2024 | 7-9/ 2023 | Change, % | 1-9/ 2024 | 1-9/ 2023 | Change, % |
Finland | 8.6 | 5.7 | 51.6 | 22.2 | 15.4 | 44.7 |
Baltic Sea region | 8.7 | 7.7 | 13.4 | 21.4 | 20.0 | 7.2 |
Belarus | 12.6 | 7.4 | 69.7 | 29.2 | 24.9 | 16.9 |
Eliminations | -0.1 | -0.3 | -0.8 | -1.0 | ||
Total | 29.8 | 20.5 | 45.4 | 72.0 | 59.3 | 21.5 |
Operating result, MEUR | 7-9/ 2024 | 7-9/ 2023 | Change, % | 1-9/ 2024 | 1-9/ 2023 | Change, % |
Finland | 8.6 | 5.7 | 51.6 | 22.2 | 15.4 | 44.7 |
Baltic Sea region | 8.7 | 7.7 | 13.4 | 21.4 | 20.0 | 7.2 |
Belarus | 12.6 | 7.4 | 69.7 | 29.2 | 12.7 | 128.4 |
Eliminations | -0.1 | -0.3 | -0.8 | -1.0 | ||
Total | 29.8 | 20.5 | 45.4 | 72.0 | 47.1 | 52.9 |
The Group's profit after taxes in January-September was EUR 55.0 (32.0) million.
Earnings per share calculated from the profit attributable to the owners of the parent company in January-September were EUR 2.62 (1.54).
Financial position and the balance sheet
Olvi Group's balance sheet total was EUR 527.8 (494.2) million on 30 September 2024. The increase in the balance sheet mainly resulted from growth in equity and non-current assets following investments. Equity per share was EUR 15.32 (13.66). The equity ratio was 60.3% (57.3%), and gearing was -11.3% (-7.7%). The Group's liquidity indicator, the current ratio, improved to 1.4 (1.3). Interest-bearing liabilities amounted to EUR 8.3 (5.1) million at the end of September. Of the interest-bearing liabilities, current liabilities accounted for EUR 1.9 (2.5) million.
Olvi Group's balance sheet and financial position are strong. The company has no net debt, and its ability to invest remained good.
The Group's cash and cash equivalents stood at EUR 44.4 (26.8) million at the end of September. Olvi has various short-term financial instruments such as credit facilities for liquidity management. Cash flow from operating activities was EUR 64.8 (10.6) million. It improved as a result of an increase in the operating result and a change in working capital from the comparison period, especially in terms of accounts receivable. Cash flow from investing activities was EUR -25.4 (-17.5) million, and cash flow from financing activities was EUR -25.9 (-25.1) million.
Investments
In its investments, Olvi focuses on environmental friendliness, cost-effective operations and capacity development to meet business requirements. Olvi Group's expansion and replacement investments were EUR 27.0 (17.3) million in January-September. Of the investments, EUR 13.9 million was related to Finland, and EUR 10.4 million to subsidiaries in the Baltic Sea region. The warehouse and logistics investment at the Iisalmi plant has proceeded on schedule, and the brew house investment is in progress. Investments in the Baltic Sea region were mainly related to production line improvements. Replacement investments necessary for the continuity of production were made in Belarus through the subsidiary's income financing, totalling EUR 2.7 million.
Seasonal nature of operations
The nature of the Group's business operations involves seasonal fluctuation. The net sales and operating result of the geographical reporting segments are not accumulated steadily. Instead, they fluctuate in accordance with the special characteristics of the seasons of the year and product seasons.
Personnel
In January-September, Olvi Group had an average of 2,446 (2,395) employees, with an increase of 2.1% from the comparison period.
Olvi Group's average number of personnel by segment:
7-9/ 2024 | 7-9/ 2023 | Change, % | 1-9/ 2024 | 1-9/ 2023 | Change, % | |
Finland | 472 | 482 | -2.1 | 458 | 459 | -0.2 |
Baltic Sea region | 1,077 | 1,087 | -0.9 | 1,080 | 1,075 | 0.5 |
Belarus | 928 | 870 | 6.7 | 908 | 861 | 5.5 |
Total | 2,477 | 2,439 | 1.6 | 2,446 | 2,395 | 2.1 |
Sustainability
Environmental sustainability
Olvi Group was selected to participate in the science-based targets for nature programme of UN Global Compact Finland, which supports the development of the Group's nature work in accordance with the framework of the Science Based Targets Network.
Social sustainability
To further develop its DEI (Diversity, Equity, Inclusion) work, Olvi Group is participating in UN Global Compact Finland's DEI peer learning group. The goal is to identify best practices and tools for promoting the DEI theme within Olvi Group and reducing the identified human rights risks.
Good governance
Preparation for the requirements of the Corporate Sustainability Reporting Directive (CSRD) continues. The focus is on the collection and digitalisation of sustainability data. Sustainability information regarding the value chain is currently being developed using the self-assessment operating model for suppliers. In addition, Olvi
Group is preparing to act in accordance with the obligations of the Deforestation Regulation. It is also monitoring and preparing for other changes in the EU's sustainability legislation. The most topical of these include environmental claims, the Packaging and Packaging Waste Regulation, and the Corporate Sustainability Due Diligence Directive.
Board of Directors and management
No changes took place in Olvi plc's Board of Directors and management during the third quarter.
Other events during the review period
Changes in the Group structure
No significant changes took place in Olvi's subsidiary holdings in January-September 2024.
Business risks and their management
Geopolitical situation
The geopolitical situation has affected Olvi's operating environment. The war in Ukraine has significantly increased business risks. The pandemic caused problems in the availability of raw materials and packaging materials, and the war has further complicated the procurement of materials. The increase in the costs of materials, which started during the pandemic and continued in 2023, has levelled out as a whole since the beginning of 2024. However, uncertainty about prices and availability has continued in the market as a result of the war in Ukraine, geopolitical tension and weather events caused by climate change. Logistics costs have remained at a high level. Olvi is responding to the increase in costs by improving operational productivity and assessing sales prices and selections to maintain profitability.
Consumer behaviour
Despite the easing of the increase in the overall cost level, high consumer prices continue to weaken consumers' purchasing power and affect consumer behaviour. This change is already being reflected in a shift in consumption to more affordable product options. In addition, overall consumption may decrease, and the premiumisation trend may come to a halt. However, there are differences between markets. Olvi Group is responding to the change by developing its product portfolio in line with consumer demand and by maintaining and strengthening market shares.
Operating environment in Belarus
The business operations and financial forecasting in Belarus continue to involve considerable uncertainty. For example, the uncertainty concerns the development of exchange rates, the unpredictability of the operating environment, local legislation and taxation, trade sanctions, and the functioning of financial transactions with Western countries. Olvi's subsidiary operates independently in Belarus and finances its operations with cash flow from its own operations.
During 2024, legislative changes have been implemented in terms of dividend payments and laws preventing the sale of companies. The payment of dividends abroad by Western-owned companies has been restricted for 2024-2025 by setting regulations on maximum amounts. According to the current interpretation, the dividend that the Belarusian company can legally pay to the parent company is around EUR 1-3 million annually in 2024 and 2025. Despite legislative changes related to the prohibition to sell, the sales restrictions concerning shares in Olvi's subsidiary remain in force. Olvi has no permission to sell shares in its Belarusian subsidiary. We are actively following the legislative situation.
Other current risks
Cybersecurity threats have increased because of the escalation of the global geopolitical situation, among other reasons. Olvi Group has prepared for increased information security threats in a variety of ways, and the new requirements under the NIS2 cybersecurity directive have been implemented according to schedule.
If the EU Packaging and Packaging Waste Regulation is to be implemented using the manner now proposed, it will increase climate emissions from product manufacturing and logistics, as well as water consumption. This would have a direct impact on Olvi's chances of achieving its environmental targets. It would also cause changes in terms of filling and handling products. We are following the regulation process closely, seeking to influence the final content and implementation guidelines of the regulation so that the sustainability aspects of Olvi Group's countries of operation and, for example, the recycling solutions already in use in Finland related to deposit-based packaging are also taken into account.
Sustainability risks are identified through human rights and climate change assessments as part of the company's strategic, business, financial and compliance risks.
Preparedness
Olvi Group has prepared several scenarios related to the development of the business environment and is prepared to respond to changing situations. The company is prepared for production disruptions and has drawn up continuity plans related to the availability of labour, raw materials and energy, for example. The company has made investments to secure energy supply and has also made efforts to ensure the availability of raw materials and packaging materials. Particular attention has been paid to the adequacy of risk management plans in accordance with risk assessments and the introduction of new risk assessment methods in terms of information security and sustainability risks, for example.
A more detailed description of the risks related to business operations is provided in Olvi Group's Board of Directors' report and the notes to the financial statements and on the company website at www.olvigroup.fi/en/ (Investors > Olvi as an investment > Risks and risk management).
Events after the review period
There are no significant events to report after the review period.
OLVI PLC
Board of Directors
Webcast
Olvi plc and its CEO will hold a press conference, which can be followed at
https://olvi.videosync.fi/q3-2024, on 16 October 2024, the date of publication of the interim report, at 12 noon. The press conference will be held in English.
A recording of the webcast can be viewed later on the company's website at
https://www.olvigroup.fi/en/releases-and-publications/financial-releases/
More information:
Patrik Lundell, CEO, Olvi plc, tel. +358 290 00 1050
Tiina-Liisa Liukkonen, CFO & CIO, Olvi plc, tel. +358 290 00 1050
TABLES:
- Consolidated statement of comprehensive income, Table 1
- Consolidated balance sheet, Table 2
- Consolidated statement of changes in equity, Table 3
- Consolidated cash flow statement, Table 4
- Notes to the interim report bulletin, Table 5
DISTRIBUTION:
Nasdaq Helsinki Ltd
Main media
www.olvi.fi
OLVI GROUP | TABLE 1 | ||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||
EUR 1,000 | |||||
7-9/2024 | 7-9/2023 | 1-9/2024 | 1-9/2023 | 1-12/2023 | |
Gross sales | 374,911 | 355,248 | 1,045,609 | 1,036,026 | 1,326,568 |
Excise taxes and other adjustments | -189,991 | -184,194 | -535,587 | -540,081 | -695,963 |
Net sales | 184,920 | 171,054 | 510,022 | 495,945 | 630,605 |
Cost of sales | -106,375 | -106,762 | -301,595 | -310,966 | -394,977 |
Gross profit | 78,545 | 64,292 | 208,427 | 184,979 | 235,628 |
Logistics, sales and marketing expenses | -37,110 | -33,378 | -102,804 | -95,698 | -126,605 |
Administrative expenses | -11,738 | -10,562 | -34,568 | -30,016 | -41,472 |
Other operating income and expenses | 151 | 172 | 977 | -12,165 | -12,633 |
Operating result | 29,848 | 20,524 | 72,032 | 47,100 | 54,918 |
Financial income | 695 | 93 | 1,353 | 515 | 990 |
Financial expenses | -390 | -422 | -1,084 | -1,229 | -1,682 |
Share of the profit of associated companies and joint ventures | 0 | 0 | 0 | 0 | 45 |
Profit before tax | 30,153 | 20,195 | 72,301 | 46,386 | 54,271 |
Income taxes | -6,722 | -3,478 | -17,297 | -14,388 | -15,798 |
PROFIT FOR THE PERIOD | 23,431 | 16,717 | 55,004 | 31,998 | 38,473 |
Other items of comprehensive income that may be subsequently reclassified as profit or loss: | |||||
Translation differences related to foreign subsidiaries | -2,280 | -1,184 | -888 | -4,576 | -5,003 |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 21,151 | 15,533 | 54,116 | 27,422 | 33,470 |
Distribution of the profit for the period: | |||||
- Owners of the parent company | 23,118 | 16,536 | 54,308 | 31,924 | 38,251 |
- Non-controlling interest | 313 | 181 | 696 | 74 | 222 |
Distribution of comprehensive income for the period: | |||||
- Owners of the parent company | 20,921 | 15,445 | 53,452 | 27,714 | 33,430 |
- Non-controlling interest | 230 | 88 | 664 | -292 | 40 |
Earnings per share calculated from profit attributable to owners of the parent company, EUR | |||||
- Undiluted | 1.12 | 0.80 | 2.62 | 1.54 | 1.85 |
- Diluted | 1.12 | 0.80 | 2.62 | 1.54 | 1.85 |
OLVI GROUP | TABLE 2 | ||
CONSOLIDATED BALANCE SHEET | |||
EUR 1,000 | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 |
ASSETS | |||
Non-current assets | |||
Intangible assets | 9,623 | 10,794 | 10,518 |
Goodwill | 22,204 | 22,204 | 22,204 |
Tangible assets | 224,954 | 208,525 | 213,182 |
Holdings in associated companies and joint ventures | 1,032 | 987 | 1,032 |
Other investments | 892 | 1,043 | 1,042 |
Loans receivable and other long-term receivables | 7,222 | 3,308 | 5,544 |
Deferred tax assets | 3,527 | 2,882 | 4,370 |
Total non-current assets | 269,454 | 249,743 | 257,892 |
Current assets | |||
Inventories | 81,783 | 80,610 | 74,190 |
Accounts receivable and other receivables | 131,512 | 137,072 | 125,815 |
Income tax receivables | 662 | 0 | 645 |
Cash and cash equivalents | 44,380 | 26,792 | 31,458 |
Total current assets | 258,337 | 244,474 | 232,108 |
TOTAL ASSETS | 527,791 | 494,217 | 490,000 |
EQUITY AND LIABILITIES | |||
Equity attributable to owners of the parent company | |||
Share capital | 20,759 | 20,759 | 20,759 |
Other reserves | 1,092 | 1,092 | 1,092 |
Fair value reserve | 295 | 295 | 295 |
Treasury shares | -658 | -881 | -881 |
Translation differences | -57,624 | -56,157 | -56,768 |
Retained earnings | 353,202 | 317,666 | 324,120 |
317,066 | 282,774 | 288,617 | |
Non-controlling interest | 1,339 | 651 | 721 |
Total equity | 318,405 | 283,425 | 289,338 |
Non-current liabilities | |||
Financial liabilities | 6,397 | 2,565 | 4,098 |
Other liabilities | 756 | 804 | 782 |
Deferred tax liabilities | 13,555 | 13,044 | 14,100 |
Current liabilities | |||
Financial liabilities | 1,944 | 2,525 | 2,908 |
Accounts payable and other payables | 179,987 | 187,356 | 178,751 |
Income tax liability | 6,747 | 4,498 | 23 |
Total liabilities | 209,386 | 210,792 | 200,662 |
TOTAL EQUITY AND LIABILITIES | 527,791 | 494,217 | 490,000 |
OLVI GROUP | TABLE 3 | |||||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||||||
EUR 1,000 | Share capital | Other reserves | Fair value reserve | Reserve for treasury shares | Translation differences | Retained earnings | Attributable to non-controlling interest | Total |
Equity 1 Jan 2024 | 20,759 | 1,092 | 295 | -881 | -56,768 | 324,120 | 721 | 289,338 |
Comprehensive income: | ||||||||
Profit for the period | 54,308 | 696 | 55,004 | |||||
Other items of comprehensive income: | ||||||||
Translation differences | -856 | -32 | -888 | |||||
Total comprehensive income for the period | -856 | 54,308 | 664 | 54,116 | ||||
Business transactions with shareholders: | ||||||||
Dividend payment | -24,826 | -24 | -24,850 | |||||
Share-based incentives, value of work performed | 718 | 718 | ||||||
Issue of treasury shares to personnel | 223 | -387 | -164 | |||||
Other changes | -713 | -713 | ||||||
Business transactions with shareholders, total | 223 | -25,208 | -24 | -25,009 | ||||
Changes in holdings in subsidiaries: | ||||||||
Acquisition of shares from non-controlling interest | -40 | -40 | ||||||
Change in non-controlling interest | 22 | -22 | 0 | |||||
Changes in holdings in subsidiaries, total | -18 | -22 | -40 | |||||
Equity 30 Sep 2024 | 20,759 | 1,092 | 295 | -658 | -57,624 | 353,202 | 1,339 | 318,405 |
EUR 1,000 | Share capital | Other reserves | Fair value reserve | Reserve for treasury shares | Translation differences | Retained earnings | Attributable to non-controlling interest | Total |
Equity 1 Jan 2023 | 20,759 | 1,092 | 295 | -1,079 | -52,030 | 310,194 | 2,514 | 281,745 |
Comprehensive income: | ||||||||
Profit for the period | 31,924 | 74 | 31,998 | |||||
Other items of comprehensive income: | ||||||||
Translation differences | -4,210 | -366 | -4,576 | |||||
Total comprehensive income for the period | -4,210 | 31,924 | -292 | 27,422 | ||||
Business transactions with shareholders: | ||||||||
Dividend payment | -24,817 | -386 | -25,203 | |||||
Share-based incentives, value of work performed | 524 | 524 | ||||||
Acquisition of treasury shares | -604 | -604 | ||||||
Issue of treasury shares to personnel | 802 | -1,376 | -574 | |||||
Other changes | 83 | 54 | -22 | 115 | ||||
Business transactions with shareholders, total | 198 | 83 | -25,615 | -408 | -25,742 | |||
Changes in holdings in subsidiaries: | ||||||||
Change in non-controlling interest | 1,163 | -1,163 | 0 | |||||
Changes in holdings in subsidiaries, total | 1,163 | -1,163 | 0 | |||||
Equity 30 Sep 2023 | 20,759 | 1,092 | 295 | -881 | -56,157 | 317,666 | 651 | 283,425 |
OLVI GROUP | TABLE 4 | ||
CONSOLIDATED CASH FLOW STATEMENT | |||
EUR 1,000 | |||
1-9/2024 | 1-9/2023 | 1-12/2023 | |
Profit for the period | 55,004 | 31,998 | 38,473 |
Adjustments: | |||
Depreciation and impairment | 19,282 | 18,364 | 24,779 |
Other adjustments | 16,466 | 18,039 | 11,778 |
Change in net working capital: | |||
Change in accounts receivable and other receivables | -7,535 | -32,132 | -20,279 |
Change in inventories | -7,869 | -12,428 | -6,377 |
Change in accounts payable and other payables | -1,054 | -3,147 | -4,789 |
Interest paid | -406 | -262 | -408 |
Interest received | 1,065 | 189 | 531 |
Dividends received | 5 | 3 | 10 |
Taxes paid | -10,197 | -10,026 | -15,764 |
Cash flow from operating activities (A) | 64,761 | 10,598 | 27,954 |
Investments in tangible and intangible assets | -25,894 | -17,832 | -25,550 |
Capital gains on disposal of tangible and intangible assets | 514 | 294 | 591 |
Acquisition of shares from non-controlling interest | 0 | 0 | -2,737 |
Dividends received | 0 | 41 | 41 |
Cash flow from investing activities (B) | -25,380 | -17,497 | -27,655 |
Loan withdrawals | 15,684 | 3,849 | 4,577 |
Repayment of loans | -18,260 | -4,747 | -6,165 |
Acquisition of treasury shares | 0 | -604 | -604 |
Dividends paid | -23,302 | -23,606 | -25,339 |
Cash flow from financing activities (C) | -25,878 | -25,108 | -27,531 |
Increase (+) / decrease (-) in cash and cash equivalents (A+B+C) | 13,503 | -32,007 | -27,232 |
Cash and cash equivalents 1 Jan | 31,458 | 61,207 | 61,207 |
Impact of exchange rate changes | -581 | -2,408 | -2,517 |
Cash and cash equivalents 30 Sep / 31 Dec | 44,380 | 26,792 | 31,458 |
OLVI GROUP TABLE 5
NOTES TO THE INTERIM REPORT BULLETIN
The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, applying the same accounting principles that were applied to the 2023 financial statements (31 December 2023). On 1 January 2024, Olvi Group changed the presentation of the segments to correspond to the monitoring carried out by the management. Intra-segment business transactions are eliminated from the segments' sales volumes and net sales in their presentation. The comparison information has been changed accordingly.
The information in the interim report is presented in thousands (1,000) of euros. For presentation, individual figures and totals have been rounded up to full thousands, which causes rounding differences in the totals. Exchange rates obtained from the Central Bank of Belarus have been used as the exchange rate for the Belarusian rouble. The key ratios have been calculated by using accurate euro-denominated figures. The information published in the interim report has not been audited.
1SEGMENT INFORMATION | |||||||||
SEGMENTS' NET SALES AND PROFIT FOR THE PERIOD 1-9/2024 | |||||||||
EUR 1,000 | Finland | Baltic Sea region | Belarus | Eliminations | Group | ||||
INCOME | |||||||||
External sales | 181,655 | 209,640 | 118,727 | 510,022 | |||||
Beverage sales | 179,866 | 209,640 | 118,727 | 508,233 | |||||
Equipment services | 1,789 | 0 | 0 | 1,789 | |||||
Internal sales | 425 | 2,919 | 0 | -3,344 | 0 | ||||
Total net sales | 182,080 | 212,559 | 118,727 | -3,344 | 510,022 | ||||
Total profit for the period | 40,989 | 15,689 | 18,656 | -20,330 | 55,004 | ||||
SEGMENTS' NET SALES AND PROFIT FOR THE PERIOD 1-9/2023 | |||||||||
EUR 1,000 | Finland | Baltic Sea region | Belarus | Eliminations | Group | ||||
INCOME | |||||||||
External sales | 175,191 | 211,576 | 109,178 | 495,945 | |||||
Beverage sales | 173,566 | 211,576 | 109,178 | 494,320 | |||||
Equipment services | 1,625 | 0 | 0 | 1,625 | |||||
Internal sales | 27 | 2,058 | 0 | -2,085 | 0 | ||||
Total net sales | 175,218 | 213,634 | 109,178 | -2,085 | 495,945 | ||||
Total profit for the period | 35,289 | 14,897 | 1,570 | -19,758 | 31,998 | ||||
2RELATED PARTY TRANSACTIONS | |||||||||
Management's employee benefits | |||||||||
Board members' and the CEO's salaries and other short-term employee benefits | |||||||||
EUR 1,000 | 1-9/2024 | 1-9/2023 | 1-12/2023 | ||||||
CEO | 521 | 268 | 358 | ||||||
Chair of the Board | 71 | 60 | 93 | ||||||
Other Board members | 170 | 124 | 165 | ||||||
Total | 762 | 452 | 616 | ||||||
| ||
30 Sep 2024 | % | |
Series A shares, number of shares | 16,989,976 | 82.0 |
Series K shares, number of shares | 3,732,256 | 18.0 |
Total | 20,722,232 | 100.0 |
Total number of votes, Series A shares | 16,989,976 | 18.5 |
Total number of votes, Series K shares | 74,645,120 | 81.5 |
Total number of votes | 91,635,096 | 100.0 |
Votes per Series A share | 1 | |
Votes per Series K share | 20 |
The registered share capital totalled EUR 20,759 thousand on 30 September 2024.
A dividend of EUR 1.20 per share for 2023 (EUR 1.20 per share for 2022), totalling EUR 24.8 (24.8) million, was paid on shares in Olvi plc. The dividend was paid in two instalments. The first instalment, EUR 0.60 per share, was paid on 18 April 2024. The second instalment, EUR 0.60 per share, was paid on 3 September 2024. Series K shares and Series A shares provide their holders with equal rights to dividends. The Articles of Association include a redemption clause concerning Series K shares.
4 SHARE-BASED REWARDS
During the review period, Olvi plc's Board of Directors decided to transfer Series A shares in Olvi plc to a key person of the company through a directed share issue without payment as part of the performance share plans for 2022-2024 and 2023-2025 in accordance with the terms and conditions of the plans in connection with the retirement of the key person. A total of 528 Series A shares were transferred as rewards. In accordance with the terms and conditions of the plans that ended, the rewards were paid in Series A shares in Olvi plc and partly in cash.
The costs related to incentive plans totalled EUR 718.3 thousand in the review period. Olvi Group has no other share or option arrangements in place.
5 TREASURY SHARES
Olvi plc transferred a total of 528 Series A shares in the company as part of the performance share plans for 2022-2024 and 2023-2025 in accordance with the terms and conditions of the plans in connection with the retirement of a key person. The Series A shares transferred accounted for 0.003% of all shares.
On 30 September 2024, Olvi plc held a total of 21,714 Series A shares in the company. The total acquisition price of treasury shares was EUR 657.8 thousand. The treasury shares do not provide the company with voting rights. The Series A shares held by Olvi plc represent 0.10% of all shares in the company and 0.02% of all votes provided by the shares in the company. The treasury shares account for 0.13% of all Series A shares in the company and 0.13% of the votes provided by all Series A shares in the company.
6 NUMBER OF SHARES OUTSTANDING | 1-9/2024 | 1-9/2023 | 1-12/2023 |
- Average | 20,697,546 | 20,690,017 | 20,690,905 |
- At the end of the period | 20,700,518 | 20,693,540 | 20,693,540 |
7 TRADING IN SERIES A SHARES ON THE NASDAQ HELSINKI | |||
1-9/2024 | 1-9/2023 | 1-12/2023 | |
Trading in Series A shares in Olvi, number of shares | 1,191,776 | 1,212,484 | 1,608,889 |
Total value of trading, EUR 1,000 | 36,710 | 36,537 | 48,077 |
Proportion of the trading out of the total number of Series A shares, % | 7.0 | 7.1 | 9.5 |
Average share price, EUR | 30.80 | 30.13 | 29.88 |
Closing price, EUR | 29.50 | 30.20 | 28.05 |
Highest price, EUR | 33.80 | 34.95 | 34.95 |
Lowest price, EUR | 28.35 | 26.80 | 26.80 |
8 FOREIGN AND NOMINEE-REGISTERED HOLDINGS 30 Sep 2024 | ||||||
Book-entry shares | Number of votes | Shareholders | ||||
number | % | number | % | number | % | |
Finnish, total | 17,112,125 | 82.59 | 88,024,989 | 96.06 | 23,583 | 99.64 |
Foreign, total | 38,038 | 0.18 | 38,038 | 0.04 | 71 | 0.30 |
Nominee-registered (foreign), total | 417,216 | 2.01 | 417,216 | 0.46 | 6 | 0.03 |
Nominee-registered (Finnish), total | 3,154,853 | 15.22 | 3,154,853 | 3.44 | 6 | 0.03 |
Total | 20,722,232 | 100.00 | 91,635,096 | 100.00 | 23,666 | 100.00 |
9 LARGEST SHAREHOLDERS 30 Sep 2024 | ||||||
Series K | Series A | Total | % | Number of votes | % | |
1 Olvi Foundation | 2,363,904 | 990,613 | 3,354,517 | 16.19 | 48,268,693 | 52.67 |
2 The estate of Heikki Hortling* | 903,488 | 103,280 | 1,006,768 | 4.86 | 18,173,040 | 19.83 |
3 Timo Einari Hortling | 212,888 | 49,152 | 262,040 | 1.26 | 4,306,912 | 4.70 |
4 Marit Hortling-Rinne | 149,064 | 14,234 | 163,298 | 0.79 | 2,995,514 | 3.27 |
5 Nordea Bank Abp, nominee-registered | 1,750,433 | 1,750,433 | 8.45 | 1,750,433 | 1.91 | |
6 Skandinaviska Enskilda Banken Ab (publ), Helsinki branch, nominee-registered | 1,338,037 | 1,338,037 | 6.46 | 1,338,037 | 1.46 | |
7 Varma Mutual Pension Insurance Company | 828,075 | 828,075 | 4.00 | 828,075 | 0.90 | |
8 Ilmarinen Mutual Pension Insurance Company | 683,000 | 683,000 | 3.30 | 683,000 | 0.75 | |
9 Pia Johanna Hortling | 23,388 | 28,894 | 52,282 | 0.25 | 496,654 | 0.54 |
10 Jens Einari Hortling | 23,388 | 18,444 | 41,832 | 0.20 | 486,204 | 0.53 |
Other | 56,136 | 11,185,814 | 11,241,950 | 54.24 | 12,308,534 | 13.44 |
Total | 3,732,256 | 16,989,976 | 20,722,232 | 100.00 | 91,635,096 | 100.00 |
* The shareholding includes shares held by the shareholder and the entities they control. | ||||||
Olvi did not receive any flagging notifications under chapter 9, section 5 of the Securities Markets Act in January-September 2024.
10 PROPERTY, PLANT AND EQUIPMENT | |||
EUR 1,000 | |||
1-9/2024 | 1-9/2023 | 1-12/2023 | |
Opening balance | 213,182 | 208,165 | 208,165 |
Additions | 29,550 | 17,065 | 26,643 |
Deductions and transfers | -262 | 28 | 1,311 |
Depreciation and impairment | -17,516 | -16,482 | -22,709 |
Exchange rate differences | 0 | -251 | -228 |
Total | 224,954 | 208,525 | 213,182 |
| |||
EUR 1,000 | |||
30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 | |
Pledged assets and commitments | |||
For own commitments | 2,342 | 3,225 | 3,268 |
Lease and rental liabilities: | |||
Maturing in less than a year | 918 | 1,256 | 1,300 |
Maturing within 1-5 years | 734 | 1,374 | 1,254 |
Total lease and rental liabilities | 1,652 | 2,630 | 2,554 |
Other liabilities | 67 | 67 | 567 |
12 VALUATION OF THE BELARUSIAN BUSINESS SEGMENT
For the 2022 financial statements (31 December 2022), the management assessed the book value of the Belarusian business segment in a changed operating environment. An impairment of EUR 35.0 million was recognised based on the assessment. Based on the management's assessment and testing, the balance sheet valuation of the Belarusian business segment on 30 September 2024 is materially at the right level, and there is no need to change the impairment recognised. The Belarusian business segment's balance sheet value was EUR 49.3 million on 30 September 2024. The valuation has been carried out in accordance with the previous year's model.
13 CALCULATION PRINCIPLES FOR KEY FIGURES
In its summary of key ratios (page 1), the Group presents key ratios directly derived from the consolidated income statement (net sales, operating result, profit for the period and their proportions of net sales, as well as earnings per share). (Earnings per share = Profit for the period attributable to owners of the parent company / Average number of shares during the period, adjusted for share issues).
In addition to its IFRS-based consolidated financial statements, Olvi plc presents Alternative Performance Measures that describe the financial performance of its business operations and provide a comparable overview of the company's profitability, solvency and liquidity.
The Group has applied the European Securities and Markets Authority's (ESMA) guidelines (effective since 3 July 2016) on Alternative Performance Measures and has determined such measures as follows:
The Group presents sales volume data in millions of litres as an Alternative Performance Measure that supports net sales. Sales volume is an important and widely used indicator in the industry that describes the scope of operations. To improve comparability between reporting periods, the Group also presents the adjusted operating result and the adjusted profit for the period as Alternative Performance Measures. The adjusted operating result is calculated by deducting significant items affecting comparability from net sales. The corresponding items have been deducted from the profit for the period when calculating the adjusted profit for the period.
Investments consist of increases in fixed assets, excluding increases under IFRS 16.
Earnings per share = Equity attributable to owners of the parent company / Number of shares at the end of the period, adjusted for share issues.
Equity ratio, % = 100 * (Equity attributable to owners of the parent company + non-controlling interest) / (Balance sheet total).
Gearing, % = 100 * (Interest-bearing liabilities - cash in hand and at bank) / (Equity attributable to owners of the parent company + non-controlling interest).
